- Goldman Sachs has begun utilizing Finteum‘s DLT platform for intraday FX swaps, joining existing users UBS and NatWest.
- The platform is now processing $1 billion in weekly transactions, tapping into a massive global FX swaps market worth $4 trillion per day.
- The shift towards real-time transactions is driving demand for faster, more flexible intraday liquidity management tools like those offered by Finteum.
Investment banking giant Goldman Sachs has started using the Finteum distributed ledger technology platform for managing intraday foreign exchange swaps, according to recent reports. This adoption signals a significant move by a major financial institution to leverage blockchain for real-time liquidity management in a market handling colossal daily volumes.
The platform is currently processing an estimated $1 billion in weekly transactions, with UBS and NatWest already counted as users. Several other international banks are reportedly in the advanced stages of onboarding, highlighting growing institutional interest.
This activity addresses a critical need as financial transactions shift to a real-time basis, creating unpredictable intraday liquidity demands. Consequently, intraday FX swaps have become a key tool for banks to manage these fluctuating needs throughout the trading day.
Finteum supports these swaps, where a bank lends one currency for another with a reversal hours later. The long-term potential is immense, given global FX trading reached $9.6 trillion per day in April 2024.
Donal Quaid, Group Treasurer of NatWest Group, stated, “Technologies like DLT are transforming how quickly and confidently institutions can see, deploy and control liquidity throughout the day.” He emphasized the platform’s role in enabling greater speed and flexibility for continuous settlement.
Meanwhile, Finteum CEO Brian Nolan indicated the company’s vision extends to potentially supporting overnight and Tom-next FX swaps in the medium term. However, the current operational focus remains squarely on optimizing intraday FX swap transactions.
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